2016 Q4 Form 10-K Financial Statement

#000158568917000038 Filed on February 15, 2017

View on sec.gov

Income Statement

Concept 2016 Q4 2015 Q4
Revenue $1.839B $1.811B
YoY Change 1.55% -35.96%
Cost Of Revenue $368.0M $937.0M
YoY Change -60.73% -9.73%
Gross Profit $665.0M -$2.220B
YoY Change -129.95% -224.02%
Gross Profit Margin 36.16% -122.58%
Selling, General & Admin $420.0M -$1.598B
YoY Change -126.28% -235.77%
% of Gross Profit 63.16%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $164.0M $173.0M
YoY Change -5.2% 9.49%
% of Gross Profit 24.66%
Operating Expenses $527.0M -$1.683B
YoY Change -131.31% -226.07%
Operating Profit $244.0M $231.0M
YoY Change 5.63% -49.23%
Interest Expense -$28.00M $1.000M
YoY Change -2900.0% -100.62%
% of Operating Profit -11.48% 0.43%
Other Income/Expense, Net $17.00M $57.00M
YoY Change -70.18% -5800.0%
Pretax Income $149.0M -$622.0M
YoY Change -123.95% -312.29%
Income Tax $546.0M -$903.0M
% Of Pretax Income 366.44%
Net Earnings -$387.0M $814.0M
YoY Change -147.54% 415.19%
Net Earnings / Revenue -21.04% 44.95%
Basic Earnings Per Share -$1.18 $2.47
Diluted Earnings Per Share -$1.18 $2.47
COMMON SHARES
Basic Shares Outstanding 989.8M shares 987.5M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2016 Q4 2015 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.062B $609.0M
YoY Change 74.38% 7.6%
Cash & Equivalents $1.062B $513.0M
Short-Term Investments
Other Short-Term Assets $39.00M $35.00M
YoY Change 11.43% -61.11%
Inventory $541.0M $442.0M
Prepaid Expenses $89.00M $112.0M
Receivables $755.0M $664.0M
Other Receivables $13.00M $226.0M
Total Short-Term Assets $3.557B $2.585B
YoY Change 37.6% 3.44%
LONG-TERM ASSETS
Property, Plant & Equipment $341.0M $411.0M
YoY Change -17.03% -94.51%
Goodwill $5.218B $5.280B
YoY Change -1.17% -1.49%
Intangibles $1.410B $1.735B
YoY Change -18.73% -12.37%
Long-Term Investments $105.0M $129.0M
YoY Change -18.6% -15.69%
Other Assets $408.0M $332.0M
YoY Change 22.89% -6.74%
Total Long-Term Assets $22.65B $23.04B
YoY Change -1.66% -2.49%
TOTAL ASSETS
Total Short-Term Assets $3.557B $2.585B
Total Long-Term Assets $22.65B $23.04B
Total Assets $26.21B $25.62B
YoY Change 2.3% -1.93%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $314.0M $268.0M
YoY Change 17.16% -10.37%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $33.00M $204.0M
YoY Change -83.82% 48.91%
Total Short-Term Liabilities $2.684B $2.465B
YoY Change 8.88% 9.22%
LONG-TERM LIABILITIES
Long-Term Debt $6.583B $10.25B
YoY Change -35.77% -11.3%
Other Long-Term Liabilities $1.492B $1.265B
YoY Change 17.94% 8.3%
Total Long-Term Liabilities $1.492B $1.265B
YoY Change 17.94% 8.3%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.684B $2.465B
Total Long-Term Liabilities $1.492B $1.265B
Total Liabilities $20.36B $19.67B
YoY Change 3.51% -8.13%
SHAREHOLDERS EQUITY
Retained Earnings -$3.323B -$3.392B
YoY Change -2.03% -27.18%
Common Stock $3.000M $3.000M
YoY Change 0.0% -70.0%
Preferred Stock
YoY Change
Treasury Stock (at cost) $0.00
YoY Change
Treasury Stock Shares 9.589K shares
Shareholders Equity $5.899B $5.985B
YoY Change
Total Liabilities & Shareholders Equity $26.21B $25.62B
YoY Change 2.3% -1.93%

Cashflow Statement

Concept 2016 Q4 2015 Q4
OPERATING ACTIVITIES
Net Income -$387.0M $814.0M
YoY Change -147.54% 415.19%
Depreciation, Depletion And Amortization $164.0M $173.0M
YoY Change -5.2% 9.49%
Cash From Operating Activities $341.0M $455.0M
YoY Change -25.05% -2.57%
INVESTING ACTIVITIES
Capital Expenditures -$80.00M -$130.0M
YoY Change -38.46% 9.24%
Acquisitions
YoY Change
Other Investing Activities $3.000M $29.00M
YoY Change -89.66% 222.22%
Cash From Investing Activities -$77.00M -$101.0M
YoY Change -23.76% -8.18%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 311.0M -326.0M
YoY Change -195.4% -0.31%
NET CHANGE
Cash From Operating Activities 341.0M 455.0M
Cash From Investing Activities -77.00M -101.0M
Cash From Financing Activities 311.0M -326.0M
Net Change In Cash 575.0M 28.00M
YoY Change 1953.57% -6.67%
FREE CASH FLOW
Cash From Operating Activities $341.0M $455.0M
Capital Expenditures -$80.00M -$130.0M
Free Cash Flow $421.0M $585.0M
YoY Change -28.03% -0.17%

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524000000 USD
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439000000 USD
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10000000 USD
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Land
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1350000000 USD
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3
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120000000 USD
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290000000 USD
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416000000 USD
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0 USD
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8000000 USD
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CY2014 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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45000000 USD
CY2015 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
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15000000 USD
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57000000 USD
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CY2015 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Tax
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CY2016 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Tax
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CY2016 us-gaap Revenue Recognition Loyalty Programs
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Hilton Honors</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Hilton Honors is a guest loyalty program provided to hotels and timeshare properties. Nearly all of our owned, leased, managed and franchised hotels and timeshare properties participate in the Hilton Honors program. Hilton Honors members earn points based on their spending at our participating hotels and timeshare properties and through participation in affiliated partner programs. When points are earned by Hilton Honors members, the property or affiliated partner pays Hilton Honors based on an estimated cost per point for the costs of operating the program, which include marketing, promotion, communication, administration and the estimated cost of award redemptions. Hilton Honors member points are accumulated and may be redeemed for the right to stay at participating properties, as well as for other goods and services from third parties, including, but not limited to, airlines, car rentals, cruises, vacation packages, shopping and dining. We provide Hilton Honors as a marketing program to participating hotels and timeshare properties, with the objective of operating the program on a break-even basis to us.</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Hilton Honors records a liability related to revenue received from participating hotels and program partners in an amount equal to the estimated cost per point of the future redemption obligation. We engage outside actuaries to assist in determining the fair value of the future award redemption obligation using statistical formulas that project future point redemptions based on factors that include historical experience, an estimate of "breakage" (points that will never be redeemed), an estimate of the points that will eventually be redeemed and the cost of reimbursing hotels and other third parties in respect to other redemption opportunities available to members. Revenue is recognized by participating hotels and resorts only when points that have been redeemed for hotel stay certificates are used by members or their designees at the respective properties. Additionally, when members of the Hilton Honors loyalty program redeem award certificates at our owned and leased hotels, we recognize room revenue, included in owned and leased hotels revenues in our consolidated statements of operations.</font></div></div>
CY2016 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;padding-left:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with United States of America ("U.S.") generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates.</font></div></div>

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